The document defines and compares dominant strategy equilibrium and Nash equilibrium in game theory. It states that a Nash equilibrium is a stable state where no player can benefit from changing their strategy if other players' strategies remain unchanged. A dominant strategy equilibrium exists when one strategy is always better than alternatives for a player, no matter how opponents play. The document notes that a dominant strategy equilibrium is also a Nash equilibrium and provides an example of the Prisoner's Dilemma game. It further explains that a Nash equilibrium can occur without a dominant strategy, exemplifying this through a game between Monsanto and Indo American Hybrid Seeds.

1. Dominant equilibrium
and Nash equilibrium
Presented by
- Group 2

2. Nash equilibrium
 The Nash equilibrium is named after John Forbes Nash,
who penned a one-page article in 1950 (and a follow-up
in 1951) describing a stable-state equilibrium in a
multiperson situation where no participant gains by a
change in his strategy as long as the other participants
also remain unchanged.

3. Dominant strategy equilibrium
 In game theory, strategic dominance (commonly called
simply dominance) occurs when one strategy is better
than another strategy for one player, no matter how
that player's opponents may play.

4. Dominant strategy equilibrium can be Nash
equilibrium
Eg. Prisoners’ Dilemma Game
3, 3 0, 11
11, 0 1, 1
confess don’t confess
confess
don’t confess
Prisoner 1
Prisoner 2

5. Nash equilibrium can occur without dominant
strategy
Eg. Monsanto and Indo American Hybrid Seeds
Low
High
Monsanto
Indo American Hybrid Seeds
70,55 85,60 55,45
60,45 75,60 40,35
55,20 50,30 60,60
Medium
Low HighMedium

6. Thank You